:max_bytes(150000):strip_icc()/GettyImages-2229019667-70284376f51e4b47b25683244f68c53f.jpg "Oklo Stock Climbs as BofA Kicks Off Coverage With Bullish Rating on AI Data Center Demand")
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KEY TAKEAWAYS
- Bank of America analysts initiated coverage of Oklo Tuesday with a bullish rating, citing the nuclear energy startup’s edge “powering the AI era.”
- The analysts said the company has the advantage of being vertically integrated and having long-term contracts that sell power directly to consumers, including data centers, industrial companies and government departments.
- Oklo shares added over 4% Tuesday and have more than tripled in value this year.
Oklo (OKLO) shares surged Tuesday, as Bank of America analysts initiated coverage with a “buy” rating, citing the nuclear energy startup’s edge “powering the AI era.”
The stock rose over 4% to close near $75, bringing its year-to-date gains to 250%. Executive orders signed by President Donald Trump this year to speed up approvals of new reactors and demand for energy to power AI have buoyed shares of nuclear companies like Oklo and NuScale Power (SMR) this year.
“Nuclear is regaining momentum, backed by both the DOE (Department of Energy) and data center operators, with Oklo well positioned to meet the rising energy needs of AI,” the analysts wrote. They issued a Street-high target of $92 for the shares, well above the mean of analysts surveyed by Visible Alpha at $80.
Bank of America suggested Oklo could have an edge over rivals as it is vertically integrated and has long-term deals with clients, among them data centers, industrial companies, and government departments. OpenAI CEO Sam Altman was an early backer of the company but stepped down from his role as its chair in April.
The analysts also said power demand from data centers, which represent a key part of Oklo’s client base, could be set to nearly double by 2035. The Santa Clara, Calif.-based company announced a partnership with Vertiv (VRT), which makes data-center equipment, in July to provide power and cooling for AI data centers.
